2013–2014 BIENNIAL BUDGET - the City of Tukwila

2013-2014 Biennial Budget City of Tukwila, WashingtonATTACHMENT A-1NOTES TO ATTACHMENT AREVENUES, EXPENDITURES AND FUND BALANCEGENERALPurposeThe purpose of the Financial Planning Model is to:Structure1. Assess the financial health of the City over a 6-year period.2. Demonstrate the impact of policy decisions on the City’s finances.3. Assist in the productive use of financial resources.4. Demonstrate compliance with the Reserve Policy.5. Determine the impact of changing economic conditions and assumptions on the planand the City’s financial stability.The General Fund receives most the City’s unrestricted revenues. Prior to 2011, retail sales taxwas allocated to other funds as a means of funding their expenditures and projects. To aidforecasting and financial management, this practice was changed so unrestricted revenues arereceived directly by the General Fund. These revenues are categorized into accounts andreporting groups according to rules established by the Washington State Auditor’s Office andcommunicated through the Budget and Reporting System (BARS). Attachment A of theFinancial Planning Model reflects the revenues and expenditures of the General Fund andselected other governmental funds. It is divided into the following sections:• General revenues• Dedicated revenues• Operating and maintenance expenditures• Transfers for operations, Reserve funding and debt service• Admin/Engineering overhead• Capital Projects• Change in fund balance, Ending fund balance• Reserve fund ending balanceGeneral revenues are revenues recorded into the General Fund. They support operations andare considered part of ordinary governmental activities and include revenues such as propertytax, sales tax and utility taxes. Special, one-time revenue sources include the sale of realproperty, land and buildings, and reimbursement of the City’s portion of the Tukwila AccessProject costs through Local Improvement District (LID) bond proceeds.Dedicated revenues are those taxes restricted as to use through legislation. They are recordedinto various capital funds based on the nature of the restriction and include revenues such as realestate excise tax (REET).Page 347